Gas prices inch up on variety of reasons
Published: Monday, August 1, 2011 at 12:00 p.m.
Last Modified: Monday, August 1, 2011 at 12:00 p.m.
Gas prices at the pump rose by an average of a penny a gallon nationwide and statewide last week, according to the ongoing survey by AAA.
Average unleaded gas prices
Current – $3.717
Week Ago – $3.704
Month Ago – $3.502
Year Ago – $2.684
Auto club analysts said crude oil prices moved around last week for multiple reasons.
First, Tropical Storm Don forced some pumping and refining operations on the west side of the Gulf of Mexico to shut down for a few days, which temporarily diminished the supply of domestic crude oil.
The ongoing wrangling in Washington, D.C., over the nation's debt ceiling also was cited as a factor creating concern among traders.
And there was a financial report from the Commerce Department that showed the economy was not performing as expected.
The gross domestic product was expected to grow at a rate of 1.8 percent during the second fiscal quarter, but the federal agency reported that it grew at a 1.3 percent annual rate
Jessica Brady, spokeswoman for AAA Auto Club South, said prices at the pump probably will increase no matter how the debt limit issue is resolved.
She said that because there is an apparent agreement on raising the debt limit, “Oil prices will likely rise as a result of the positive news.”
However, even if no agreement was reached and the U.S. defaulted on its loans, “It would cause the value of the dollar to drop and increase the appeal of crude oil as a commodity.”
Reader comments posted to this article may be published in our print edition. All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.